Markets Lined Up Like Dominoes, Warns Citigroup

With tight spreads and some low probability, high impact risks in the coming months, now is the wrong time to go long on European credit, according to research from Citigroup Inc (NYSE:C) Research's Matt King. Like a row of dominoes, King says there is no reason for a chain of events to cause euro credit to take a dive, but he cautions that investors seem unaware of how precarious their position may currently be.

“Ironically, our best guess has been and remains that the domino run will not quite get started in the first place—or, at a...